Once again politicians and pundits are calling for increases in the legal minimum wage. Their reasons are familiar. Market wages are supposedly immoral. People need to earn a “living wage.” If the minimum wage went up at least to $7, or better still to near $10 an hour, millions would be lifted out of poverty. [1] The economic case against minimum
Those familiar with the history of twentieth 20th-century economic thought know of the dominance of “Keynesian economics” following the Second World War. While John Maynard Keynes typically receives credit for transforming economics, much postwar Keynesian economics was actually developed by his interpreters and followers. Perhaps the single
Modern mainstream economics has particular strengths and weaknesses. Mainstream concepts like opportunity cost, comparative advantage, and marginal cost pricing have great merit. Yet mainstream economics places undue emphasis on equilibrium. The shortcomings of mainstream economics are subtle, but can be understood with clear examples. Such
On June 7, the US Senate voted to kill an amendment to the US Constitution which would have, in part, defined a marriage as a legal union between a man and a woman. But regardless of its fate, the issue is far from dead. There are compelling reasons to oppose any such amendment and to analyze the mistaken assumptions behind it. First, we must deal
“But when are you going to get to the economics?” It was the end of my first day volunteering to teach “basic economics” to a group of fifth graders. The teacher looked bemused as she asked the question. “That’s what I’m doing,” I whispered a little curtly in reply. Realizing her offense, she quickly explained her meaning: “You know, with all the
I am pleased to report the inflation monster has been captured and placed in a jar. This stunning announcement as well as an accompanying video detailing the highlights was made by the European Central Bank in cooperation with the national central banks of the euro area. Along with the announcement, the ECB has produced an information kit on
It is no longer fashionable in political science to refer to “self-evident principles.” Indeed, any reference to self-evident or axiomatic propositions is taken to be evidence that a scholar is leaving the realm of science and entering a mysterious netherworld consisting of tautologies, definitions, and metaphysical statements. [1] Thus, the great
The sub-discipline of international relations in the twentieth century has been dominated by the realist idea that cooperation between state actors is extremely unlikely due to the anarchic nature of the international system. According to the traditional realist logic, the international system lacks an independent enforcing agency capable of
Energy policy makers tell you that they are working hard to bring you cheaper, cleaner, better gasoline. But the reality is otherwise. Nearly every trend in energy policy distorts markets, restricts supply, thwarts innovation, and shackles production. Let us discuss some of the fallacies that Washington continues to embrace, including some in the
Economic science receives little attention and its value is seriously questioned by the very men in society to which it should provide a guide for practical action. [1] — Carl Menger Economics has been widely labeled the “dismal science” and this is certainly true — but not in modern America. Our cultural insistence on a smiley, can-do attitude
What is the Mises Institute?
The Mises Institute is a non-profit organization that exists to promote teaching and research in the Austrian School of economics, individual freedom, honest history, and international peace, in the tradition of Ludwig von Mises and Murray N. Rothbard.
Non-political, non-partisan, and non-PC, we advocate a radical shift in the intellectual climate, away from statism and toward a private property order. We believe that our foundational ideas are of permanent value, and oppose all efforts at compromise, sellout, and amalgamation of these ideas with fashionable political, cultural, and social doctrines inimical to their spirit.